Question
Suppose a ten-year, $1,000 bond with an 8.4% coupon rate and semiannual coupons is trading for $1,035.88. a. What is the bond's yield to maturity
Suppose a ten-year, $1,000 bond with an 8.4% coupon rate and semiannual coupons is trading for $1,035.88.
a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)?
b. If the bond's yield to maturity changes to 9.9% APR, what will be the bond's price?
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Practical Financial Management
Authors: William R. Lasher
5th Edition
0324422636, 9780324422634
